What is IOC in the Stock Market? A Simple Guide for Everyday Investors
Have you ever placed a food order and asked the restaurant to cancel it if it’s not delivered within 10 minutes? That’s kind of how IOC works in the stock market! IOC stands for Immediate or Cancel, and just like the name suggests, it’s an order that either gets executed instantly or gets canceled.
Now, if that piqued your interest, you're not alone. In this article, we’ll dive into the concept of IOC in a super-simple, engaging way. We’ll also explore how it plays a vital role in today’s high-speed trading environment, especially when you’re using the best algo trading software in India.
What is IOC in stock market? Learn all about it and how it connects with the best algo trading software in India and online trading software.
What is IOC in the Stock Market?
IOC stands for Immediate or Cancel. It’s a type of trading order where you instruct your broker to either execute the order immediately at your set price or cancel it right away.
Imagine going into a shop and telling the seller, “Sell me this at ₹100 right now, or forget it.” That’s the essence of an IOC order.
How Does an IOC Order Work?
When you place an IOC order, here’s what happens:
The system checks if your order can be executed immediately at your desired price.
If yes, it executes as much as possible.
If no match is found instantly, the order is canceled—partially or completely.
It all happens within a blink of an eye—literally milliseconds.
IOC vs Other Order Types
Let’s break down how IOC differs from other common order types:
Order Type | Description |
Market Order | Buys or sells at the best available price. |
Limit Order | Buys or sells at a specific price or better. |
IOC Order | Executes instantly or cancels what can’t be filled. |
GTC (Good Till Canceled) | Remains open until manually canceled. |
So, IOC is all about speed and precision—great for fast-paced markets.
Why Do Traders Use IOC Orders?
Traders love IOC orders because:
They don’t have time to wait.
They want to avoid partial fills that hang around.
They aim for price discipline—no surprises.
If you’re into algo trading, this order type is your best friend.
Benefits of Using IOC Orders
Here are some solid perks:
Avoid Delays: No waiting around. If it doesn’t go through instantly, it’s canceled.
Control: You know exactly what price you’re dealing with.
Efficiency: Great for high-frequency traders and algo trading strategies.
Limitations of IOC Orders
It’s not all sunshine, though. IOC has some downsides:
Missed Opportunities: If the stock doesn’t meet your price instantly, the order dies.
Partial Execution: You might only get part of what you wanted.
Not Ideal for Beginners: You need to know what you’re doing to use it effectively.
Who Should Use IOC Orders?
IOC is great for:
Day Traders who need quick execution.
Algorithmic Traders using smart software.
Institutions buying or selling large volumes fast.
Not so great for:
Long-term investors
Beginners who aren’t watching the market closely
IOC and Algorithmic Trading: A Perfect Match
IOC orders are a favorite tool in algorithmic trading. Why?
Because algos are designed for:
Speed
Efficiency
Decision-making based on market conditions
They use IOC orders to snap up deals quickly without cluttering the order book.
Best Algo Trading Software in India
When you’re dealing with IOC orders, the software you use makes all the difference. Here are some top picks for best algo trading software in India:
Quanttrix – Simple, beginner-friendly.
Alice Blue ANT IQ – Affordable and fast.
Tradetron – Great for strategy automation.
Upstox Algo Lab – Ideal for coders and quants.
NinjaTrader – Advanced charting + algo tools.
Look for features like low latency, custom strategy support, and real-time analytics.
Best Algorithmic Trading Software India: What to Look For
Before picking one, consider:
Speed: Can it execute IOC orders instantly?
Interface: Is it beginner-friendly or super technical?
Backtesting: Can you test your strategies before risking money?
Broker Integration: Does it connect with your broker?
Price: Is it cost-effective for your needs?
A well-designed online trading software makes all the difference in execution.
How IOC Orders Work in Online Trading Software
With online trading platforms, placing an IOC order is usually just a click away.
Most platforms like Zerodha, Upstox, and Angel One offer:
Dropdown menus to select “IOC”
Real-time feedback on order status
Automatic cancellation of unfulfilled quantities
It’s as easy as ordering food online—just faster.
IOC in Intraday Trading vs Long-Term Investing
Intraday Traders benefit the most from IOC:
Capture quick price moves
Avoid order book clutter
Long-Term Investors? Not so much:
They usually prefer GTC or limit orders
No urgency for instant execution
Real-Life Examples of IOC Orders
Let’s say Rina wants to buy 500 shares of XYZ at ₹100.
She places an IOC order.
The market only has 300 shares available at that price.
The platform buys 300 and cancels the rest.
Boom—done in seconds. No hanging orders, no confusion.
How to Place an IOC Order (Step-by-Step Guide)
Here’s how to do it using your online trading software:
Login to your platform (Zerodha, Upstox, etc.)
Go to Buy/Sell window
Enter Stock Name and Quantity
Set your Limit Price
Choose Order Type: IOC
Click Submit
That’s it! You’ve just placed your first IOC order.
Conclusion: Should You Use IOC Orders?
If you’re into speedy trades, using IOC orders could be a game-changer—especially when paired with the best algorithmic trading software India has to offer.
But for long-term investors, IOC might be overkill. Like racing a Ferrari in a parking lot—it’s powerful, but unnecessary.
So, ask yourself: “Do I need this order to go through right now, or can I wait?”
Your answer will tell you if IOC is your friend.
FAQs
What is the full form of IOC in stock trading?
IOC stands for Immediate or Cancel. It means your order will either be filled instantly or canceled.
Can retail investors use IOC orders?
Yes, most online trading software platforms allow retail investors to use IOC orders easily.
Is IOC suitable for long-term investing?
Not really. IOC is best for short-term or algorithmic traders who need instant action.
Which is the best algo trading software in India?
Platforms like Quanttrix, Tradetron, and Upstox Algo Lab are among the top choices.
Are IOC orders risky?
Not risky, but they do require precision. If your price isn’t matched instantly, your order gets canceled.
